Presentation held by Petter Bartz Johannesen, Managing Director of Weyland BioEthanol, at the Nordic Seed Capital Summit in Stockholm, 19 May 2011.

1. Nordic Seed Capital Summit Stockholm May 19
“Sustainable
fuel
at
compe22ve
prices”
Pe7er
Bartz-­‐Johannessen
Managing
Director

2. “The
Age
of
cheap
energy
is
over”
The
oil
price
has
almost
doubled
within
a
year
Interna2onal
Energy
Agency:
“The
Age
of
cheap
energy
is
over”
450
400
US
Crude
&
350
Petroleum
Imports
President
Barack
Obama:
Billions
USD
300
-­‐
plan
to
cut
America’s
import
250
of
foreign
oil
by
a
third
by
200
2025
150
100
50
Sweden:
0
-­‐
goal
to
be
oil-­‐free
by
2020
1990
2000
2010

3. Cellulosic
Ethanol
is
part
of
the
solu2on
• There
are
over
750
million
motor
vehicles
in
the
world
today.
• If
present
trends
con2nue,
the
number
of
cars
on
Earth
will
double
in
the
next
30
years.
• The
transport
sector
already
consumes
between
40
and
50
%
of
the
total
oil
produc2on.
• Cellulosic
ethanol
is
widely
recognized
as
one
of
the
most
promising
ways
to
meet
the
need
for
clean
transport
fuels.
• Cellulosic
ethanol
has
the
poten2al
to
reduce
the
emission
of
greenhouse
gases
by
90%
compared
to
fossil
fuel.

4. Video
presenta2on

5. Weyland
AS
• Weyland
is
a
privately
owned
company
established
in
2001
• The
company
has
its
origin
from
research
conducted
at
Bergen
University
College
• The
technology
converts
lignocellulosic
materials
like
forestry
and
agricultural
wastes
into
fermentable
sugars
• The
sugar
is
subsequently
fermented
to
ethanol.

6. Vision:
Vision
Our
vision
and
aspira.on
is
to
stay
in
the
forefront
of
the
development
of
technology
for
chemical
conversion
of
cellulose
to
fermentable
sugar
..
..
and
thus
be
able
to
supply
the
market
with
the
most
viable
solu.ons
for
produc.on
of
ethanol
and
other
chemicals
from
cellulose!

7. Business
Model
Business
Model:
• Focus
on
core
technology
of
the
sugar
produc2on
process,
i.e.
to;
• develop
proprietary
technology
for
conversion
of
cellulose
to
sugar.
Our
strategy
is
to
sell:
• Technology
licenses
• Weyland
hardware
• Project
management
• Feedstock
qualifica2ons
etc.

8. Technology
development
• 1000
+
laboratory
and
bench
scale
tests
• A
wide
variety
of
feedstock
has
been
tested
• Yield
0.25
to
0.33
liters
of
ethanol
per
kg
dry
feedstock
dependant
on
the
type
of
raw
material
• The
Weyland
technology
has
proved
to
be
very
robust
and
provides
a
high
yield
independent
of
feedstock
types.

9. Pilot
plant
• Sponsored
by
Innova2on
Norway,
the
Norwegian
Research
Council
and
Statoil,
an
advanced
pilot
plant
has
been
built
in
Bergen,
Norway.
• The
nominal
capacity
is
equivalent
to
200,000
liters
ethanol
output
per
year.
• The
main
purpose
is
to
verify
the
process,
and
to
demonstrate
the
commercial
viability
of
the
technology.
• The
pilot
plant
was
opened
in
October
2010.
______________________________________________________________________________________
Sponsors:

10. Industrial
demonstra2on
plant
• A
Front
End
Engineering
&
Design
study
for
an
industrial
size
demo
plant
in
Norway
was
conducted
in
2010.
• The
produc2on
capacity
will
be
approximately
approx
30
million
liters
of
ethanol
per
year.
• The
project
was
a
coopera2on
between
Weyland,
Elkem
and
Desmet
Ballestra
Ethanol.
• The
plant
can
u2lize
surplus
energy
from
Elkem’s
silica
plant.
Salten

11. Demonstra2on
plant
-­‐
CAPEX
Investment
budget
for
a
demonstra2on
plant:
• Capacity:
30
million
litre
ethanol
per
year
32
000
tonnes
of
lignin
per
year
• Feedstock:
100
(dry)
tonnes
fuel
chips
from
residues
per
year
• Energy:
Waste
heat
from
silica-­‐produc2on
Electricity
from
own
biogas
plant
Total
investment:
Approx
Euro
100
mill

12. Demonstra2on
plant
–
produc2on
costs
0,5
EUR
/
litre
Ethanol1)
Inputs!
0,8
0,7
 Feedstock
–
Spruce
chips
0,6
 Feedstock
25
ton/h
(50%
moisture)
0,5
Lignin
Pellets
 Feedstock
price
Approx
€
100/dry
ton
0,4
 Acid
&
Solvent
cost
€
0,042/l
Manpower
0,3
Waste
streams
Output!
0,2
U2li2es/Energy
0,1
 3500
l
Ethanol/h
(
30
000
m3/yr)
Chemicals
0
 4
t
lignin
pellets/h
(7%
moisture)
Feedstock
 4
MW
Power
from
biogas
 1,8
t/hr
liquid
fer2lizer
(no
value
assumed)
1)
Weyland
&
Desmet
Ballestra

13. Market
outlook
The
Interna2onal
Energy
Agency:
Biofuels
share
of
the
transporta2on
fuel
market
will
increase
from
the
current
level
of
2
%
to
27
%
in
2050
The
demand
for
ethanol
will
increase
many
2mes:
• 2005:
42bn
liters
per
year
• 2012:
82bn
liters
per
year
• 2030:
300bn
liters
per
year
The
produc2on
of
cellulosic
ethanol
is
cri2cal
to
the
growth
of
the
ethanol
market.
Market
poten2al:
• Produc2on
capacity
of
2.genera2on
ethanol
will
have
to
increase
from
almost
zero
today
to
200
billion
liters
in
2030.
• Require
more
than
1000
large
scale
produc2on
units
…
or
more
likely;
…
several
thousand
small
and
medium
scale
plants.
• For
many
of
these
installa2ons
the
Weyland
process
may
be
the
best
choice!

14. Market
development
US
cellulosic
ethanol
produc2on
2006-­‐2012
Cellulosic
ethanol
has
been
slower
to
take
off
than
expected
!
• Technological
hurdles
• Doubts
about
economic
viability
-­‐
financing
• Uncertainty
over
government
support
US
ethanol
produc2on
1980-­‐2007
Corn-­‐based
ethanol
also
took
several
years
to
get
going
…
..
suddenly
there
was
exponen2al
growth!
Source:
Renewable
Fuels
Associa2on,
January
2010

15. Weyland’s
success
factors
Weyland’s
recipe
for
success;
• Proven
technology
based
on
well
known
chemical
processes.
• The
process
has
several
advantages
over
other
sugar
producing
technologies:
• Mul2ple
feedstock
versa2lity
• High
ethanol
yield
Capex
Price
[EURO]
Technology
groups
Weyland
core
technology
Biogas
plant
22
000
000
€
10
300
000
€
• Good
industrial
scalability
Other
groups
of
technology
0,8
31
000
000
€
Electric
and
M&C
0,7
8
200
000
€
Piping
5
800
000
€
• The
process
is
largely
driven
by
low
grade
0,6
Civil
works,
buildings
0,5
10
200
000
€
energy,
and
can
u2lize
waste
heat
from
other
Erec2on
7
800
000
€
Lignin
Pellets
Services
0,4
1
800
000
€
Manpower
industries
Permit
engineering
0,3
1
800
000
€
Engineering
0,2
3
600
000
€
Waste
streams
Spare
parts
0,1
1
500
000
€
U2li2es/Energy
• 3rd
party
verifica2on
of
favorable
Capex
and
Opex
TOTAL
104
000
000
€
0
Chemicals
Feedstock

16. Financials
Current
financing
Sources
of
Funds
Applica2on
of
Funds
Share
capital
€
2.8m
R&D
-­‐
Opera2ons
€
2.5m
Statoil
LOOP
conver2ble
loan
€
0.8m
Bench
Scale
Tes2ng
€
0.4m
Public
Grants
€
2.8m
Pilot
Plant
Construc2on
€
5.1m
Loan
€
1.6m
Total
€
8.0m
Total
€
8.0m
Financing
requirement
2011
-­‐
2013
Sources
of
Funds
Applica2on
of
Funds
New
Share
Capital
€
6.0m
Commercializa2on
of
the
technology
€
m
Public
Grants
€
3.0m
R&D
/
Pilot
Plant
opera2on
€
m
Total
€
9.0m
Scale-­‐up
engineering
€
m
IPR,
Marke2ng,
etc
€
m
Posi2ve
cash
flow
expected
from
2013
Opera2ons
€
m
Total
€
9.0m
• Venture
Capital
Exit
strategy
3
–
5
years
Investor
preference:
• Strategic
partner
Long
term
investment

17. Summary
1. Cellulosic
ethanol
is
widely
recognized
as
one
of
the
most
promising
ways
to
meet
the
need
for
clean
fuels.
2. Although
the
cellulosic
ethanol
market
has
been
slow
in
coming,
we
can
expect
very
strong
growth.
3. The
Weyland
process
is
very
robust
and
highly
compe22ve.
Weyland
-­‐
a
great
investment
opportunity!

18. Thanks
for
your
a7en2on
!
www.weyland.no
“Sustainable
fuel
at
compe22ve
prices”

19. Important
milestones
in
2011
• Weyland
has
been
awarded
NOK
20
million
(Euro
2,5
million)
in
grants
from
Innova2on
Norway
for
further
tes2ng
and
development
of
the
technology
• As
the
first
company,
Weyland
has
obtained
a
Compliance
cer2ficate
from
Det
Norske
Veritas
that
the
process
meets
EU’s
direc2ve
for
sustainability
• Ini2ated
by
Elkem
a
new
company;
Salten
Bioetanol
AS,
has
been
established
with
the
purpose
of
developing
an
Industrial
scale
demo
plant
in
Norway
• Contract
with
The
Latvian
Forrest
Company
LVM
to
undertake
a
concept
evalua2on
for
an
industrial
size
plant
in
Latvia
based
on
our
technology

20. Technology
There
are
three
main
methods
to
produce
sugar
from
cellulose:
• Biologic
hydrolysis
-­‐
using
enzymes
• Dilute
acid
hydrolysis
-­‐
using
acid
and
heat
• Strong
acid
hydrolysis
-­‐
using
concentrated
acid
The
Weyland
process
is
based
on
strong
acid
hydrolysis
of
the
cellulose.
• The
earliest
produc2on
of
ethanol
by
this
method
started
in
Germany
in
the
1920s
• Weyland’s
process
differs
from
exis2ng
technology
in
its
unique
method
of
removing
and
recycling
98.5%
of
the
acid.
• This
enables
produc2on
of
fermentable
sugar
at
lower
cost
and
represents
a
significant
environmental
benefit.